OM TEST 2

How to calculate efficiency

efficiency = (output work divided by input work) times 100%.

what factors should be considered when making a location decision? Why is each of these factors significant?

facilities, competition, logistics, labor, community and site, political risk and incentives

what methods are used to evaluate/compare location possibilities? How/When are they used?

factor-rating locational cost-volume analysis center-of-gravity transportation models

how to calculate break even point

fixed costs / (selling price - variable costs)

capacity management

integrating the service component of the marketing mix with efforts to influence consumer demand

Evaluation Methods

interview, skilled observation, inventories, scales, checklists, ecological assessments, standardized assessments

Costs of Quality

prevention costs, appraisal costs, internal failure costs, external failure costs

Bottleneck

process in which a large population declines in number, then rebounds

RFID

radio frequency identification, similar to barcodes

Pareto Principle

roughly 80% of the effects come from 20% of the causes

Tactics for Matching Capacity to Demand

1) Making staffing changes 2) Adjusting equipment - Purchasing additional machinery -Selling or leasing out existing equipment 3) Improving processes to increase throughput 4) Redesigning products to facilitate more throughput 5) Adding process flexibility to meet changing product preferences 6) Closing facilities

TQM (Total Quality Management)

A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.

how do you know if data is in control or out of control?

A process is said to be out of control if: One or more data points fall outside the control limits Seven consecutive data points increasing or decreasing Eight consecutive data points are on one side of average Fourteen consecutive data points alternating up & down Two data points, out of three consecutive data points, are on the same side of the average in zone A or beyond Four data points, out of five consecutive data points, are on the same side of the average in zone B or beyond Fifteen consecutive data points are within zone C (above and below the average) - if its not any of that, then it is in control.

throughput rate

the output rate that the process is expected to produce over a period of time

Demand Management

the process of changing demand patterns using one or more demand options

Views of Quality

user-based, manufacturing-based, and product-based

AGV

Automated Guided Vehicle. A computer-controlled system that uses pallets and other interface equipment to transport work pieces to NC machine tools and other equipment in a flexible manufacturing system.

ASRS

Automated Storage/Retrieval System. A system that moves material either vertically or horizontally between a storage compartment and a transfer station or within a process.

What is the time of the slowest workstation in a production​ system? A. effective capacity B. bottleneck time C. throughput time D. utilization

B. bottleneck time

What term refers to the location of competing companies near each​ other? A. neighboring B. clustering C. centralizing D. battling

B. clustering

What is a drawing of the movement of​ material, product or​ people? A. AIS B. flowchart C. process chart D. RFID

B. flowchart

Attribute inspection measures A. if cause and effect are present. B. if the product is good or bad. C. such dimensions as​ weight, speed,​ size, or strength to see if an item falls within an acceptable range. D. whether or not the product attributes conform to the​ inspector's personal tastes.

B. if the product is good or bad.

Which of the following is NOT an example of tangible​ costs? A. utilities B. public transportation facilities C. labor D. depreciation

B. public transportation facilities

Which of the following costs is NOT a cost of​ quality? A. scrap B. research and development C. rework D. lost goodwill

B. research and development

Which of the following methods is a mathematical technique used for finding the best location for a single distribution point that services several stores or​ areas? A. locational​ cost-volume analysis B. ​center-of-gravity method C. ​factor-rating method D. transportation model

B. ​center-of-gravity method

Managing quality helps build successful strategies of A. ​differentiation, low cost and service. B. ​differentiation, low cost and response. C. ​differentiation, time and response. D. ​differentiation, time and service.

B. ​differentiation, low cost and response.

A device or technique that ensures production of a good unit every time is a A. zero defect. B. ​poka-yoke. C. ​fail-safe. D. control chart.

B. ​poka-yoke.

What is an electronically guided and controlled cart used to move​ materials? A. RFID B. CNC C. AGV D. AIS

C. AGV

What is a system that stores and displays information that can be linked to a geographic​ location? A. ASRS B. CIM C. GIS D. RFID

C. GIS

What is the major difference in focus between a location decision in the service sector vs. the manufacturing​ sector? A. The focus in manufacturing is on revenue​ maximization, while the focus in service is on cost minimization. B. There is no difference in focus. C. The focus in service is on revenue​ maximization, while the focus in manufacturing is on cost minimization. D. The focus in manufacturing is on​ labor, while the focus in service is on raw materials.

C. The focus in service is on revenue​ maximization, while the focus in manufacturing is on cost minimization.

Most organizations operate A. at their design capacity. B. above their design capacity. C. below their design capacity. D. below the theory of constraints.

C. below their design capacity.

A large quantity and large variety of products are produced in A. repetitive focus. B. product focus. C. mass customization. D. process focus.

C. mass customization.

Low-volume, high-variety production is best suited for which of the following process​ strategies? A. repetitive focus B. product focus C. process focus D. mass customization

C. process focus

Which of the following is NOT a production technology that enhances production and​ productivity? A. vision systems B. automatic identification systems C. service blueprinting D. process control

C. service blueprinting

In many​ applications, human quality inspectors can be replaced effectively by A. RFID tags. B. automated storage and retrieval systems. C. vision systems. D. FMS.

C. vision systems.

The causes of variation in statistical process control

Common cause variation: - inherent to the system. This variation can be changed only by improving the equipment or changing the work procedures; the operator has little influence over it. Assignable cause: - variation comes from sources outside of the system.

Which of the following is NOT true about Six​ Sigma? A. It was developed by Motorola in the 1980s B. It is a program designed to reduce defects to help lower costs C. It utilizes a​ five-step improvement​ model, DMAIC D. It is only applicable in manufacturing

D. It is only applicable in manufacturing

Which of the following statements is NOT true regarding location​ decisions? A. Location often has the power to make or break a​ company's business strategy. B. Location decisions are important because location has a major impact on the overall risk and profit of the company. C. Location decisions to support a​ low-cost strategy require particularly careful consideration. D. Once management is committed to a specific​ location, many costs become relatively easy to reduce.

D. Once management is committed to a specific​ location, many costs become relatively easy to reduce.

Inspections should NOT take place A. during the​ step-by-step production process. B. at your​ supplier's plant while the supplier is producing. C. at your facility upon receipt of goods from your supplier. D. after costly or irreversible processes.

D. after costly or irreversible processes.

What is the theoretical maximum output of a system in a given period under ideal​ conditions? A. efficiency B. effective capacity C. utilization D. design capacity

D. design capacity

Which of the following is the Japanese term used to describe continuous improvement​ efforts? A. kanban B. ​poka-yoke C. six sigma D. kaizen

D. kaizen

Which of the following determinants of service quality means the firm performs the service right the first time and that the firm honors its​ promises? A. competence B. responsiveness C. credibility D. reliability

D. reliability

Which of the following techniques might a service or retail organization use to make a location​ decision? A. transportation method B. crossover charts C. locational​ cost-volume analysis D. traffic counts

D. traffic counts

effective capacity

Design capacity minus allowances such as personal time and maintenance

Design Capacity

The maximum output rate or service capacity an operation, process, or facility is designed for

which control charts are used for attribute data

The two charts are the p (proportion nonconforming) and the u (non-conformities per unit) charts.

which control charts are used for variable data

The x-bar and R-chart are quality control charts used to monitor the mean and variation of a process based on samples taken in a given time.

Value Stream Mapping

a graphical way to analyze where value is or is not being added as material flows through a process

break-even analysis

a method of determining what sales volume must be reached before total revenue equals total costs

Statistical Process Control

a statistical technique that uses periodic random samples from production runs to see if quality is being maintained within a standard range of acceptability

a production manager at a pottery facotry gas noticed that about 70% of defects result in raw materials. 15% result from human error, 10% from machine malfunctions, and 5% from a variety of other causes. this manager is most likely using: a. a pareto chart b. a scatter diagram c. a quality loss function d. a cause-and-effect diagram e. a flowchart

a. a pareto chart

the causes of variation in statistical process controls are: a. natural causes and assignable causes b. cycles, trends, seasonality and random variables c. mean and range problems d. producers causes and customers causes

a. natural causes and assignable causes

how to calculate utilization

actual output/design capacity

an x-bar control chart was examined and no data points fell outside of the limits. can this process be considered in control? a. yes b. not yet, the R-chart must be checked c. no d. not yet, the number of samples must be known

b. not yet, the R-chart must be checked

why are location decision so important

bc costly decisions impact both fixed and variable costs

a nationwide parcel delivery service keeps track of the number of late deliveries per day. they plan on using a control chart to plot their results. which type of control chart do you recommend? a. both x-bar and R-chart b. p-chart c. c-chart d. x-bar chart e. both p-chart and c-chart

c. c-chart

7 concepts of TQM

1. Continuous improvement 2. Six Sigma - a statistical and data-driven process analyzis limit mistakes or defects. It emphasizes cycle-time improvements while reducing manufacturing defects to no more than 3.4 occurrences per million units or events. 3. Employee empowerment 4. Benchmarking 5. Just-in-time (JIT) - a form of inventory management that requires working closely with suppliers so that raw materials arrive as production is scheduled to begin, but no sooner. The goal is to have the minimum amount of inventory on hand to meet demand. 6. Taguchi concepts - Design quality into the product. Achieve quality by minimizing deviation from the target. Measure the cost of quality as a function of deviation from the standard (Taguchi loss function). 7. Knowledge of TQM tools: Pareto Principle. Scatter Plots. Control Charts. Flow Charts. Cause and Effect , Fishbone, Ishikawa Diagram. Histogram or Bar Graph. Check Lists. Check Sheets.

What is the primary objective for a service or retail organization when making a location​ decision? A. Maximize revenue B. Minimize cost C. Maximize size of the labor pool D. Minimize​ customer-drawing area

A. Maximize revenue

To develop a standard or​ benchmark, firms need to start with A. determining what to benchmark. B. forming a benchmark team. C. identifying benchmarking partners. D. collecting benchmarking information.

A. determining what to benchmark.

​Cause-and-effect diagrams are also known as A. ​fish-bone charts. B. target specification graphs. C. flowcharts. D. Pareto charts.

A. ​fish-bone charts.

Control Charts

ATTRRIBUTES: p-chart c-chart VARIABLES: x-bar chart and R-chart

Four basic process strategies

Process focus: - might be departments devoted to welding, grinding, and painting. In an office the processes might be accounts payable, sales, and payroll. The process focuses on low volume, high variety products. Repetitive focus: - falls between the product and process focus. The repetitive process is a product-oriented production process that uses modules. Product focus: - high volume, low variety. Products such as light bulbs, rolls of paper, beer, and bolts are examples of product process. Mass customizations: - rapid, low-cost production that caters to constantly changing unique customer desires. This process is not only about variety; it is about making precisely what the customer wants when the customer wants it economically.

Process Mapping

Used to describe the process visually Clarifies the steps/sequence in the process Clarifies who performs each step Identifies how the work flows through the organization Identifies where the key linkages are with other parts of the organization Helps to identify areas for improvement